Comparing UMC (OTCMKTS:UMCN) & SPS Commerce (NASDAQ:SPSC)

UMC (OTCMKTS:UMCN) and SPS Commerce (NASDAQ:SPSC) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Risk and Volatility

UMC has a beta of 33.65, indicating that its share price is 3,265% more volatile than the S&P 500. Comparatively, SPS Commerce has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for UMC and SPS Commerce, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMC	0	0	0	0	0.00
SPS Commerce	1	8	2	1	2.25

SPS Commerce has a consensus price target of $106.80, indicating a potential upside of 15.80%. Given SPS Commerce’s stronger consensus rating and higher probable upside, analysts clearly believe SPS Commerce is more favorable than UMC.

Valuation and Earnings

This table compares UMC and SPS Commerce”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMC	N/A	N/A	-$180,000.00	N/A	N/A
SPS Commerce	$637.77 million	5.45	$77.05 million	$2.23	41.36

SPS Commerce has higher revenue and earnings than UMC.

Profitability

This table compares UMC and SPS Commerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UMC	-1,022.22%	N/A	N/A
SPS Commerce	11.65%	12.17%	10.14%

Insider & Institutional Ownership

99.0% of SPS Commerce shares are owned by institutional investors. 16.8% of UMC shares are owned by company insiders. Comparatively, 1.0% of SPS Commerce shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

SPS Commerce beats UMC on 10 of the 12 factors compared between the two stocks.

About UMC

UMC, Inc. provides medical insurance claims coding and processing, electronic medical records storage, chargemaster review, pricing comparison, and accounts receivable management services to healthcare providers. Its customers primarily include hospitals, medical clinics, and physician practitioners in the United States. The company was formerly known as United Medicorp, Inc. and changed its name to UMC, Inc. in May 2007. UMC, Inc. was incorporated in 1989 and is based in Pampa, Texas.

About SPS Commerce

SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States and internationally. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment, an electronic data interchange solution that scales as a business grows, where companies use a single system to manage orders and logistics from various sales channels, including wholesale, eCommerce, and marketplaces; and Analytics product that enables organizations to enhance visibility into how products are selling through a single connection across various sales channels, including wholesale, eCommerce, and marketplaces, as well as enhances access and usage of sales and inventory data through a combination of analytics applications, network of connections, and industry-leading expertise. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies; and community product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management and onboarding programs. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.